Gabion Technologies Lists With Modest Premium, Misses GMP Hopes
Overview
Gabion Technologies India debuted on the BSE SME at ₹89 on Tuesday, January 13, a 9.88% premium over its ₹81 IPO price. The industrial products maker raised ₹29.16 crore but fell short of significant grey market expectations, which had priced shares at ₹112. The IPO was heavily oversubscribed 768 times, with strong demand from NIIs and retail investors. Proceeds will fund working capital and machinery.
Gabion Technologies India commenced trading on the BSE SME segment on Tuesday, January 13, marking its stock market debut. The industrial products manufacturer successfully raised ₹29.16 crore via its initial public offering (IPO). The company's shares opened at ₹89, a 9.88% premium over the IPO issue price of ₹81 per share.
Listing Performance Diverges from Grey Market
Despite a positive debut, the listing price fell significantly short of grey market expectations. Unofficial reports indicated Gabion Technologies shares traded at ₹112 in the grey market prior to listing, reflecting a substantial 38.27% premium over the ₹76–₹81 IPO price band. This discrepancy suggests the market sentiment leading up to the listing may have overestimated the stock's immediate valuation.
IPO Oversubscription and Fund Utilization
The public offering itself witnessed overwhelming demand. Gabion Technologies' IPO, comprising a fresh issue of 3.6 million equity shares, was subscribed an impressive 768.12 times its offering. Non-institutional investors (NIIs) spearheaded this demand, subscribing their portion by an extraordinary 1,085.88 times. Retail investors also showed strong participation, subscribing 867.21 times, while qualified institutional buyers (QIBs) subscribed 271.13 times.
The company has allocated the net proceeds from the IPO primarily towards working capital requirements, earmarking ₹22.11 crore for this purpose. An additional ₹1.05 crore will be invested in purchasing plant and machinery, with the remaining funds directed towards general corporate activities. KFin Technologies acted as the registrar for the offering, and GYR Capital Advisors served as the sole book-running lead manager.
